What happens to dividends paid during the transfer period?

Dividends paid while your shares are in transit are typically deposited to your EquatePlus account, not your receiving account. Once the transfer completes, future dividends are credited to your Paasa account.

Do I need to use my LRS limit for an in-kind transfer?

No. An in-kind transfer moves shares, not money, so it does not count as a remittance under the Liberalised Remittance Scheme. The USD 250,000 annual LRS limit does not apply to the transfer itself. LRS rules and TCS apply only if you separately remit cash from India to your brokerage account.

Do I need to report these RSUs in Schedule FA after the transfer?

Yes. If you are an Indian tax resident (Ordinary Resident), foreign holdings must be disclosed in Schedule FA of your ITR every year. Paasa generates a ready-to-use Schedule FA report with peak and closing values in INR using SBI TT buying rates, so you can copy the numbers directly into your return. RNORs are exempt from Schedule FA disclosure during their RNOR window.

EquatePlus RSU Transfer for Indian Residents: Avoid Forced Selling

Q: How long does the transfer to Paasa take?

Typically 2 to 6 weeks once both sides have confirmed the transfer details. Timelines depend on how quickly EquatePlus releases the shares, the type of share (DTC-eligible vs. non-DTC), and your account verification status at Paasa.

If you are an Indian resident or returning NRIs who holds RSUs on EquatePlus, you have a hard deadline after leaving your employer: sell your shares within 6 months or have your account restricted.

For many, this feels like a forced sell that triggers a tax bill, even if they would have preferred to hold the stocks.

However, there’s a way around it. You can transfer your positions ‘in-kind’ to a platform that supports Indian residents without selling them.

This article explains what actually happens when EquatePlus restricts your account, why an in-kind transfer is usually a better option than selling, and the platforms in India that you can use.

What happens when EquatePlus restricts your account or forces you to sell your RSUs?
Is there a way around selling my RSUs?
What are the advantages and disadvantages of in-kind transfer?
What platforms can I use for this as an Indian resident?
How to transfer RSUs from EquatePlus to Paasa
FAQs

What happens when EquatePlus restricts your account or forces you to sell your RSUs?

EquatePlus is the equity management platform used by many large multinationals (SAP, ABB, Siemens, Schneider Electric, Henkel, and others) to administer employee stock plans, including RSUs, ESPP, and stock options.

While you are an active employee, your vested shares can sit on EquatePlus indefinitely.

Once you leave your employer, this changes. EquatePlus gives you a 6-month window to either sell your vested shares or transfer them out to another brokerage. After this window closes, the account is restricted, and in some cases EquatePlus liquidates the shares on your behalf.

Important context here: your vested RSUs already belong to you. EquatePlus is the custodian holding them on behalf of your employer's stock plan, and once your employment ends, the plan no longer covers you.

Is there a way around selling my RSUs?

Yes. You can transfer your shares in-kind to another brokerage instead of selling them.

An in-kind transfer moves your shares from EquatePlus to a new brokerage account exactly as they are. There is no sale, no cash conversion, and no repurchase on the other end. The same shares simply move to a new custodian.

Note: In-kind transfers can take 2 to 6 weeks to complete end to end. If your 6-month deadline is approaching, start the process early.

What are the advantages and disadvantages of in-kind transfer?

Advantages

No immediate tax event and holding period is preserved.

When you transfer shares in-kind, there is no sale and no capital gain realized. Your cost basis (the share price on the date of vesting) and your holding period both carry over to the new account unchanged. Tax becomes due only when you eventually sell.

Also, foreign equity held for more than 24 months qualifies for long-term capital gains, taxed at 12.5% without indexation. Selling and rebuying on a new platform resets the clock. An in-kind transfer keeps the original holding period intact.

For example, if your holding period is less than 24 months and you are forced to sell your shares, your gains will be taxed at the your income tax slab as short-term capital gains. If you retain the shares and sell them after 24 months, your gains will be taxed at the long-term capital gains rate of 12.5%.

You stay invested.

Selling forces you to exit a position on EquatePlus's timeline, not your own. A transfer lets you hold the shares as long as you want, and sell when it makes sense for your portfolio and your tax planning.

Disadvantages

There are no practical disadvantages to speak of.

What platforms can I use for this as an Indian resident?

For Indian residents, two platforms can receive in-kind transfers from EquatePlus: Paasa and Interactive Brokers (IBKR).

Paasa is built specifically for Indian residents and returning NRIs holding foreign assets. The execution layer is the same Interactive Brokers infrastructure, but Paasa adds the India compliance layer on top: Schedule FA reports, capital gains reports in INR calculated using SBI TT buying rates, and direct support for ITR filing of foreign holdings. You also get access to over 10 global exchanges from the same account, which matters if you plan to diversify beyond your existing RSU position.

Interactive Brokers is a full-featured global trading platform. You get broad market access and deep trading tools, but no India-specific compliance support. FEMA reporting, Schedule FA, and ITR filing for your foreign assets are entirely your responsibility. For most Indian residents holding foreign equity, this becomes an ongoing administrative burden every tax year.

For a detailed side-by-side comparison of both platforms, read our Paasa vs IBKR comparison.

How to transfer RSUs from EquatePlus to Paasa

Step 1: Create your Paasa account

If you haven't already, download the Paasa app and complete your KYC to open your global investing account.

Step 2: Request transfer instructions

Send an email to support@paasa.com with the subject line “Equateplus Transfer Request”. Our team will reply with the specific clearing details you need to input into your Equateplus portal.

Step 3: Initiate transfer in Equateplus

Log in to your Equateplus portal and navigate to the transfer section. Input the clearing details and settlement instructions provided by the Paasa team to "push" the shares out.

Step 4: Share transfer details with Paasa

Once you have initiated the transfer on Equateplus, reply to the support thread with your transfer details:

Account Number
Stock Symbol
Exchange
Number of shares being transferred

We need these details to open the secure window on our side to accept the incoming Euro shares.

Step 5: Liquidation and Diversification

Once received, the shares will appear in your Paasa app.

You can then liquidate them directly through the Paasa app. Our platform handles the multi-currency aspect seamlessly, allowing you to reinvest the proceeds into global stocks, UCITS ETFs, or managed strategies.

Need Assistance?

If you'd like our team to walk you through the process or have any questions around tax or compliance, reach out at support@paasa.com.

About Paasa

Paasa is a global investing platform built specifically for Indian residents and returning NRIs. We provide direct access to over 10 global exchanges, including the United States, United Kingdom, Switzerland, Hong Kong, Germany, France, Canada, Netherlands, Japan, and Singapore and support 9 global currencies.

Seamless "In-Kind" Transfers (ACATS): You can move your entire US stock portfolio (from brokers like Robinhood, Schwab, Fidelity, E*TRADE, and more) directly to Paasa. This allows you to consolidate your assets in one place without triggering a tax event.
The Compliance Advantage: Paasa provides the exact reports you need for your Indian tax returns and foreign asset disclosures, eliminating the need for manual calculations.
Estate Tax Protection: Paasa offers access to Ireland-domiciled (UCITS) ETFs, allowing you to legally shield your long-term investments from the 40% US Estate Tax that applies to non-residents.

Frequently Asked Questions

Does an in-kind transfer of RSUs trigger a tax event in India?

No. Under Section 2(47) of the Income Tax Act, a "transfer" requires a change in beneficial ownership. A broker-to-broker transfer where you remain the beneficial owner throughout is not a taxable transfer. Your cost basis and holding period carry over to the new account, and capital gains tax is only triggered when you actually sell.

What if my 6-month EquatePlus deadline has already passed?

Contact EquatePlus directly. In many cases, accounts past the deadline are restricted but the shares have not yet been liquidated. There may still be a window to initiate a transfer, but this varies by employer plan and the specific terms governing your account.

Can I transfer some of my shares and sell the rest?

Yes. EquatePlus typically supports partial transfers. A common approach is to sell a portion of your shares to cover any tax already due from the original RSU vesting, and transfer the remainder in-kind to your new account. Confirm this with EquatePlus before initiating.

How long does the transfer to Paasa take?

Is EquatePlus forcing you to sell your RSUs?